Lenders, led by Indian Overseas Bank (IOB), are selling ‘862 crore of bad loans from Sion Panvel Tollways (SPTL), the concessionaire originally tasked with collecting user fee on the arterial road linking downtown Mumbai with its distant cluster of suburbs, Navi Mumbai. The reserve price has been set at ‘286.75 crore, with the aim of recovering 33% from the sale of bad debt.
Indian Overseas Bank has an exposure in excess of a third of the admitted claims.
The debt on sale includes exposures from Bank of Baroda, Canara Bank, Punjab National Bank, State Bank of India, and India Infrastructure Finance Co. Indian Overseas Bank holds the largest share at 36.5%. While Bank of India, Tamilnad Mercantile Bank, and ARCs – Suraksha ARC & Phoenix ARC – are not included in the debt sale. IOB has the largest share of 36.5% followed by Canara Bank at 19.35% and IIFCL at 18.48%.
